ETF Versus

SGOV vs VGSH

iShares 0-3 Month Treasury Bond ETF vs Vanguard Short-Term Treasury Index Fund ETF Shares

Last updated: 2026-04-10

SGOV iShares

iShares 0-3 Month Treasury Bond ETF (SGOV) is an exchange-traded fund issued by iShares that provides exposure to short-duration U.S. Treasury bonds with low interest rate risk. It charges a low expense ratio of 0.09%. The fund offers an attractive dividend yield of 3.95%. Launched in 2020, the fund has a 6-year track record.

AUM: $85.9B ER: 0.09% Yield: 3.95% Since: May 26, 2020
VGSH Vanguard

Vanguard Short-Term Treasury Index Fund ETF Shares (VGSH) is an exchange-traded fund issued by Vanguard that provides exposure to short-duration U.S. Treasury bonds with low interest rate risk. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.92%. Launched in 2009, the fund has a 17-year track record.

AUM: $28.9B ER: 0.03% Yield: 3.92% Since: Nov 19, 2009

Quick Verdict

VGSH has a slightly lower expense ratio (0.03% vs 0.09%), saving about $119 per $10,000 over 10 years. Both funds have delivered similar 1-year returns (0.1% vs -0.3%), tracking closely.

Key Metrics

Metric SGOV VGSH
Expense Ratio 0.09% 0.03%
Dividend Yield 4.0% 3.9%
Fund Family iShares Vanguard
Category US Short-Term Treasury US Short-Term Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

90 93 96 99 102 105 2021-04 2022-07 2023-10 2025-01 2026-04
SGOV +0.5%
VGSH -5.0%

Performance Comparison

Period SGOV VGSH Difference
1 Month +0.02% -0.27% +0.29%
3 Months +0.01% -0.51% +0.52%
6 Months +0.00% -0.68% +0.68%
YTD +0.09% -0.53% +0.62%
1 Year +0.06% -0.27% +0.33%
3 Years +0.17% +0.02% +0.15%
5 Years +0.48% -4.98% +5.46%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SGOV Fees VGSH Fees You Save
$10,000 10 years $179 $60 $119
$10,000 20 years $771 $258 $512
$10,000 30 years $2,486 $835 $1,650
$50,000 10 years $896 $299 $597
$50,000 30 years $12,428 $4,176 $8,252
$100,000 30 years $24,855 $8,352 $16,503

Risk Metrics

Based on 5 years of daily returns

Metric SGOV VGSH
Annualized Volatility 1.1% 2.1%
Max Drawdown -0.7% -7.0%
Sharpe Ratio -4.11 -2.58

Dividend Comparison

Metric SGOV VGSH
Annual Dividend (per share) $3.97 $2.29
Dividend Yield 3.95% 3.92%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose VGSH if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Either works if...

you just need broad us short-term treasury exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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